If a Bank Cashes a Check That Is Later Returned

question 59

Multiple Choice

If a bank cashes a check that is later returned for insufficient funds, whom does it charge to recover the amount lost?

• A) The check's maker
• B) The person who received the money
• C) The person to whom the check was written
• D) The person who last endorsed the check

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Definitions:

Normal Goods

Normal goods are goods for which demand increases as the income of consumers increases, showing a positive relationship between income and demand.

Income Increases

The rise in earnings received by an individual or household, which can impact consumption, savings, and investment behaviors.

Opportunity Cost

Opportunity cost represents the value of the best alternative foregone when a decision is made to choose one option over another.

Optimum

Refers to the best or most favorable condition, value, or level of something.